Under the Bounce Back Loans scheme, businesses can apply for between £2,000 and £50,000, dependent on your turnover (the maximum loan is 25% of your turnover). The government will cover interest repayments for the first 12 months, as well as providing a guarantee to lenders. However, businesses will remain 100% liable to repay the full loan amount, as well as interest, after the first year.
If your business requires finance above £50,000, then applications for the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme of the Bank of England’s Covid Corporate Financing Facility scheme may be suitable.
Available over a fixed six-year term, the Bounce Back Loans will be set at a 2.5% interest rate pa, with no lender’s fees incurred. Businesses won’t be required to make any repayments for the first 12 months, but will still have to repay the loan and interest after 12 months. The good news is that early repayment won’t mean any additional fees.
A list of the banks that are BBLS accredited lenders is, as follows:
Bank of Ireland
Bank of Scotland
Skipton Business Bank
The co-operative bank